S&P 500, NASDAQ END HIGHER AS INVESTORS EYE ECONOMIC PATH

Reuters – July 6, 2022

The S&P 500 ended barely larger on Tuesday as buyers stored their deal with the expansion trajectory of the U.S. financial system, and the tech-heavy Nasdaq closed larger whereas the Dow slipped.

U.S. shares have been beneath relentless promoting strain this 12 months, with the benchmark S&P 500 index (.SPX) recording its steepest first-half proportion drop since 1970, because the Federal Reserve strikes away from easy-money coverage by elevating borrowing prices.

Buyers are ready for minutes from the Fed’s assembly in June on Wednesday as they brace for one more 75-basis-point price hike on the finish of the month.

Merchants are additionally conserving a watch on financial knowledge, together with a June nonfarm payrolls report anticipated on Friday, and on firm commentaries for indicators of peaking inflation and cooling financial progress, with one other earnings season across the nook.

Knowledge confirmed new orders for U.S.-manufactured items elevated greater than anticipated in Could, reflecting that demand for merchandise stays robust even because the Fed seeks to chill the financial system.

Individually, enterprise progress throughout the euro zone slowed additional in June and European pure gasoline costs surged once more, reigniting worries of a recession within the bloc.

“The dangers of an outright recession are nonzero and the chance is rising at this level {that a} recession might emerge later – this 12 months, or maybe even into early 2023,” stated Invoice Northey, senior funding director at U.S. Financial institution Wealth Administration in Minneapolis. “And the U.S. labor market continues to look fairly wholesome.”

The Dow Jones Industrial Common (.DJI) fell 129.44 factors, or 0.42%, to 30,967.82, the S&P 500 (.SPX) gained 6.06 factors, or 0.16%, to three,831.39 and the Nasdaq Composite (.IXIC) added 194.39 factors, or 1.75%, to 11,322.24.

Benchmark U.S. Treasury yields tumbled on Tuesday and a key a part of the yield curve inverted for the primary time in three weeks as financial progress considerations dented danger urge for food and elevated demand for the safe-haven U.S. debt.

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